BILL ANALYSIS Ó AB 2148 Page 1 Date of Hearing: April 23, 2014 ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT Roger Hernández, Chair AB 2148 (Mullin) - As Amended: April 10, 2014 SUBJECT : Workforce development: annual workforce metrics dashboard. SUMMARY : Requires the California Workforce Investment Board (CWIB) to, among other duties, assist the Governor in the development of an annual workforce metrics dashboard to measure investment in workforce development. Specifically, this bill : 1)Requires the CWIB to develop an annual workforce metrics dashboard that measures the state's human capital investments in workforce development to understand the collective impact of these investments on the labor market and shall be produced using existing available data and resources currently collected and accessible to state agencies. 2)Provides that the CWIB shall convene workforce program partners to develop a standardized set of inputs and outputs for the workforce metrics dashboard and outlines the workforce metrics dashboard shall do all of the following: a) Provide a status report on credential attainment, training completion, degree attainment and wage gain outcomes of workforce education and training programs. The CWIB shall publish and distribute the final report. b) Provide demographic breakdowns to include race, ethnicity, age, gender, veteran status, wage and credential degree outcomes and information on workforce outcomes in different industry sectors, to the extent possible. c) Measure, at a minimum and to the extent feasible within existing resources, the performance specified workforce programs. 3)Authorizes the State Department of Education (CDE) to collect and keep the information confidential for tracking purposes social security numbers of adults participating in adult education programs so that accurate participation in those programs can be represented in the metrics dashboard. 4)Specifies that the participating workforce programs shall AB 2148 Page 2 provide participant data in a standardized format to the Labor Market Information Division (LMID) of the Employment Development Department (EDD). 5)Requires LMID of the EDD to aggregate the data provided by the participating workforce programs and report the data to the CWIB organized by demographics, earnings and industry of employment to assist the CWIB in the production of the annual workforce metrics dashboard. EXISTING FEDERAL LAW enacts federal Workforce Investment Act (WIA) of 1998 which provides for workforce investment activities, including activities in which states may participate and also contains various programs for job and employment investment, including work incentive programs, as specified. EXISTING STATE LAW : 1)Establishes by Executive Order, in response to the mandate of the federal WIA the CWIB which assists the Governor in setting and guiding policy in the area of workforce development and training. Members of the CWIB are appointed by the Governor and represent the many facets of workforce development - business, labor, public education, higher education, economic development, youth activities, employment and training, as well as the Legislature. 2)States the CWIB is also responsible for assisting the Governor in the alignment of the education and workforce investment systems to the needs of the state's current and future workforce and the promotion of the development of a well-educated and highly skilled 21st century economy and workforce. FISCAL EFFECT : Unknown COMMENTS : Currently there is no cross-system data collaboration in place to measure and assess the effectiveness of workforce investment and career technical education programs AB 2148 Page 3 aimed at achieving statewide workforce development policy goals, annually. California has numerous state and local entities providing academic and vocational education, workforce training, school-to-career transition programs, and economic development activities. In recent years there has been increasing emphasis at both the federal and state level on integrating all these programs to the extent possible, encouraging strategic planning and establishing methods to measure performance, enhance accountability, improve student outcomes and to focus education and training on high demand industries to provide more career opportunities. The author seeks with this bill to provide the parameters a cross-system workforce metrics dashboard using existing data collected by workforce programs that reports on credential and degree attainment, wage gain outcomes of the workforce education and training programs and the outcomes by demographic categories. The purpose is to support current efforts by these programs to increase enrollments in education and training that has a documented payoff for individuals and for regional economies. The author states the important missing link is the availability of this data providing evidence of how effective the programs are at moving students into high quality education and training, what kinds of wage outcomes individuals across the various programs achieve and how these efforts change over time. The author believes the annual snapshot would provide the Governor, Legislature and other stakeholders involved with necessary data to assist them in making informed investment decisions. ARGUMENTS IN SUPPORT : A broad group of business and labor argue in support of this bill which creates a cross-system metric dashboard on workforce and career technical education investments in California. They also strongly support the provision that authorizes the California Department of Education (CDE) to confidentially collect social security numbers for adults participating in adult education programs since there is currently no tracking of the impact workforce investments or training have on the labor market, such as degree attainment and wage outcomes. Lastly, AB 2148 Page 4 they collectively argue, California is currently implementing a new adult education strategy with the goal of better alignment between adult education programs offered by CDE and community colleges. While community colleges currently collect social security numbers so they can measure the impact of their programs on subsequent employment and wages, currently CDE does not. This provision will help to better align local programs, measure program effectiveness, and improve on program design and delivery. RELATED PRIOR LEGISLATION : SB 118 (Lieu) Chapter 562, Statutes of 2013 provides that the CWIB is also responsible for assisting the Governor in the alignment of the education and workforce investment systems to the needs of the 21st century workforce and the promotion of the development of a well-educated and highly skilled 21st century economy and workforce. SB 118 also requires the CWIB to assist the Governor in targeting resources to specified industry clusters that provide economic security and leverage state and federal funds to ensure that resources are invested in activities that meet the needs of specified industry sectors and advance the education and employment of students and workers so they can meet the specified needs of the state, its regional economies, and leading industry sectors, among other things. SB 293 (Ducheny) Chapter 630, Statutes of 2006 restructures and revises provisions related to the state administration of and education services under the federal WIA by the CWIB. REGISTERED SUPPORT / OPPOSITION : Support Edge Coalition California Budget Project California Hospital Association California Labor Federation, AFL-CIO California Manufacturing and Technology Association California Workforce Association Career Ladders Project for the California Community Colleges Los Angeles Area Chamber of Commerce National Council of La Raza PolicyLink State Building and Construction Trades of California AB 2148 Page 5 Veterans Caucus of the California Democratic Party Opposition None on file. Analysis Prepared by : Lorie Alvarez / L. & E. / (916) 319-2091